Minimum Debenture
- The minimum debenture for the SBA portion of the loan is $60,000. This equates into a total project amount of about $150,000
Maximum Debenture
- $5 Million for most 504 loans
- $5.5 Million for small manufacturers
Borrower Injection
The borrower may provide the 10-20% injection in the following ways:
- Personal or business cash
- Equity in real estate (special conditions apply)
- Personal or business loan
Amount Financed
Typically, the Partner Bank finances 50% of the total project amount, the SBA finances 40% and the small business injects 10% cash/equity. If the building is deemed Special Purpose, the borrower would be required to inject an additional 5% cash/equity, for a total injection of 15%. If the business is considered a New Business, the borrower would be required to inject an additional 5% cash or equity, for a total injection of 15%. If the business is a new business and the building is special purpose, the borrower would be required to inject an additional 10% cash or equity, for a total injection of 20%.